SolarCity Corp (NASDAQ:SCTY) has bagged yet another project from an industrial manufacturer. Unical Aviation, Inc. announced Thursday that it has hired SolarCity to install solar arrays on its roof. It will have more than 1 megawatt of power generation capacity. Unical Aviation manufactures aircraft components for clients like The Boeing Company (NYSE:BA) and the military.
SolarCity to help Unical save millions of dollars
Unical Aviation increased its workforce by 25% last year to 370 employees. The company plans to finance its growth with savings generated by going solar. Unical anticipates that solar systems would cut its rising monthly electricity bills by about 80%. Unical Aviation vice president Leonardus Karsana said in a statement that the company decided to go solar primarily for the environmental reasons. And it was no brainer, financially.
Karsana said he expects the company to save $200,000 on electricity costs in the first full year after SolarCity Corp (NASDAQ:SCTY) completes the installation. It will generate millions of dollars in savings over the solar systems’ lifetime. The new solar panels will prevent 27 million pounds of carbon from getting into the atmosphere over their lifetime. It means the solar array will have the same impact as planting one million trees.
SolarCity to see strong growth this year
Despite its strong growth prospects, research firm Robert W. Baird downgraded SolarCity Corp (NASDAQ:SCTY) from Outperform to Neutral. As of Q2 2013, SolarCity had more than 25% share in the U.S. residential solar market, up from 20% in Q1 2013. The company estimates 475-525 megawatts of project deployment this year, which represents about 80% annual growth at the midpoint.
Baird analysts believe SolarCity Corp (NASDAQ:SCTY)’s project deployment target is quite realistic given the rising solar demand in the U.S. With more than $500 million in cash, the San Mateo-headquartered company has financing capabilities to gain additional market share. The U.S. residential solar market is expected to jump 20% this year.
SolarCity Corp (NASDAQ:SCTY) shares were up 0.15% to $75.63 in pre-market trading Friday. The stock has gained 324% over the past 12 months.